Euro crisis eats into catering giant Compass' revenues

The shakiness of the eurozone is even hitting Compass, though the FTSE 100 catering giant is still on track to make more than £1 billion in profits this year.

That’s thanks to growth in Australia and particularly in the US, where it has won contracts at universities and hospitals. In the half-year to the end of March sales are up 5%, roughly in line with City expectations. Broker Panmure Gordon reckons it will rack up profits of £1.15 billion for 2013, which should mean there is plenty of cash to make acquisitions, keep buying back its own shares and ensure a healthy divi.

The company admitted that “economic conditions across Europe and Japan remain difficult” with like-for-like revenue declines in the first half, and it has exited some uneconomic contracts. At its North American business organic revenue growth is expected to be around 8.5%.

The group provides catering to schools and hospitals to offshore rigs — and those strawberries at the Wimbledon tennis.